THE READINESS OF IRAQ'S SECURITIES MARKET TO APPLY ISLAMIC SUKUK INSTRUMENTS

Abstract

The study assesses the readiness of the Iraq Stock Exchange to apply of Islamic Sukuk (bonds) by determining the market’s readiness from a Shariah, legal, and financial perspective. It also examines the feasibility of applying modern Islamic financial instruments in this market and clarifies the concept of Sukuk, its regulations, and issuance mechanism. The study sheds light on the Iraq Stock Exchange and the relationship between Islamic Sukuk and stock market indicators by studying the case of the Iraq Stock Exchange (ISX). The study uses appropriate statistical methods for testing and found that the readiness in the Iraq Stock Exchange for the implementation of Islamic Sukuk is statistically significant (Sig=0.00) and has a high level of agreement (above 0.80). Finally, the study provides recommendations to the Iraq Stock Exchange (the sample of the study) in line with its findings, including the necessity of enhancing the market’s effectiveness through legislating Islamic Sukuk and investment fund laws. Additionally, it emphasizes the importance of learning from successful experiences of other countries in Islamic Sukuk issuance, such as Malaysia, Saudi Arabia, the UAE, and the UK, to benefit the national economy.